Settling advances on an invoice

When a matter has an outstanding advance payment, you can settle it against an invoice for that matter. You can do this while you create the invoice, afterwards from the invoice edit screen, or as a dedicated step when a remaining advance needs to be settled in full. This article covers all three.

Settle an advance when you create an invoice

1. Go to the matter that has the advance payment and create an invoice.

Matter page with the New invoice menu open, showing the Based on matter option.

2. Choose how you want to settle the outstanding advance:

• No: don't settle any outstanding advances.
• Yes, settle with this invoice: settles the advance against this invoice, so the outstanding balance becomes €0 (if the advance is sufficient).
• Yes, settle with all outstanding advances fully: settles all outstanding advances against this invoice. If the outstanding advance amount is higher than the invoice amount, this generates a negative amount (credit invoice), which you can pay back to your client.

New invoice screen for a matter, showing the option to settle outstanding advances.

3. Click Create.

Legalsense generates the invoice with the advance settled as you specified.

Note: You don't have to settle the advance while you're creating the invoice. If outstanding advances remain after the invoice is created, you can still settle them from the invoice edit screen.

Settle an advance from the invoice edit screen

You can also settle an advance after the invoice already exists in draft.

1. Open the draft invoice for editing.

If an advance is present in the matter, a Settle advance button appears.

Draft invoice edit screen showing the Settle advances button, at the bottom of the time entries.

2. Click Settle advance.

Settle advance screen showing the settlement options.

3. Choose how you want to settle the advance, using the same options described above.

Settle a remaining advance in full

Sometimes the amount of an advance payment invoice turns out to be higher than the final fee amount for the hours actually spent on the matter. This leaves a remaining advance amount that still needs to be settled. To settle it:

1. Go to the relevant matter.
2. Click New invoice, then click Based on matter.
3. Click Settle outstanding advances, then choose Yes, settle all outstanding advances fully.
4. Finalize the draft invoice and send it to the client.
5. Transfer the remaining advance amount to the client.

Legalsense fully settles the advance in the matter.

See the article ↪ Invoicing single matters for how advance invoices are created in the first place.